wv insurance; property & casualty.

if a person is guilty of violating the laws against unfair trade practice and the commissioner determines that the person knew or reasonably should have known he|she was in violation of the law, the commissioner may order the person to pay a maximum penalty of ___ for violations in a 6 month period.

$100,000.

Under the terrorism risk insurance act of 2002, what is the "trigger limit" before claims are paid for your the year 2018?

$160 million. ($100 million in 2015 & $120 million in 2016: the trigger will increase by $20 million each year)

coverage provided under the west virgina FAIR plan may not exceed for any one habitational risk or commercial risk.

$200,000 | $500,000.

minimum auto liability in the state of west virginia is ___

$25 | $50 | $25.

how much is paid for debris removal under a covered loss?

$25,000.

zach's total loss of business income would've been $300,000 but by renting a building & equipment, he manages to reduce that loss by $80,000. zach's commercial property police includes business income coverage with extra expense. how much will his insurer indemnify him?

$370,000. (the form pays the $150,000 for the extra expenses he incurred to keep going after the loss, and the $220,000 actual total loss of business income for a total of $370,000)

the normal waiting period for coverage under the national flood insurance is ___

30 days.

which of the following is not considered an instrumentality of transportation or communication under the nationwide inland marine definition? 1. a toll bridge. 2. a truck - tractor. 3. electric transmission lines. 4. a television transmitter.

a truck - tractor.

which of the following is not a covered peril under the standard fire policy? 1. actions of war. 2. removal from the premises any property endangered by a covered peril. 3. lightning. 4. fire.

actions of war.

under the farm insurance forms, the max amount payable for a loss to a satellite dish is ___

actual cash value.

independent agent system:

agencies that are independent contractors contract with several different companies to represent & sell for those companies.

fair credit reporting act (FCRA) of 1970:

allows the public to be informed that certain reports may be ordered to check on credit history, previous claims & other pertinent information for underwriting purposes.

an agent living in ohio wishes to write insurance business on clients residing in west virginia. what must the ohio agent do to qualify for a non - resident west virginia license?

be a licensed agent in good standing in his home state.

a family takes their 50horsepower outboard motorboat to the lake on a trailer towed behind their personal auto. the pleasure boat is appropriately covered for physical damages under which policy?

boatowners insurance.

the personal liability section of a homeowners policy covers which of the following? 1. damage to an insureds property caused by visitor. 2. bodily injury or property damage caused by the personal activities of an insured. 3. bodily injury to a resident caused by a neighbors dog. 4. bodily injury or property damage caused by war.

bodily injury or property damage caused by the personal activities of an insured.

difference between umbrella policies & excess policies:

both policies provide excess amount of insurance, but an umbrella policy can also broaden the coverage.

example of a business eligible for a businessowner policy?

branch bank.

"personal injury" is best described in which of the following situations: 1. death as a result of cancer. 2. calling a client a cheat & fraud. 3. a dog bite. 4. a broken leg.

calling a client a cheat & fraud.

amount of insurance an agent or producer may write in a given period of time, on their own immediate family, their employer|employee, is known as:

controlled business.

broad cause of loss form:

coverage for perils in basic & additional perils + names on the form [named peril form]

personal inland marine (personal effects) form:

covers an insured's personal belongings.

in ___ state that permits companies to decide whether to provide workers compensation coverage.

elective state.

authority specifically given to an agent, either orally or in writing, is known as:

express authority.

commercial auto policy.

vehicle insurance policy providing financial protection for a business' vehicle & it's drivers.

west virginia has specified certain types of commercial insurance as exempt from rate - filing requirements. all of the following are types of policies that are exempt from filing rates in west virginia, except: 1. umbrella liability. 2. commercial inland marine. 3. workers compensations. 4. D & O (directors & officers) liability.

workers compensation.

sue insures a home for $100,000 under a dwelling property board form (DP-2). if a flood occurs and causes $1000 in damage to the homes contents, how much will her insurance company pay?

$0.

what is the penalty for a cease and desist order?

$5,000 per each act not to exceed $50,000 in a six month period.

insurance policies and forms must be filed with and approved by the commissioner within how many days?

60 days.

a binder may not cover a period in excess of ___

90 days.

financial modernization act of 1999.

AKA Gramm-Leach-Bliley Act (1999) [insurers can buy banks; banks can underwrite insurance.]

a products liability policy would provide coverage for damages that arise from ___

a bicycle rider is injured when a wheel malfunctions.

what exposures is covered under the basic commercial general liability policy?

damages caused by products after their sale.

an insurance binder is described as:

temporary short - term evidence of coverage.

the federal regulations that is also known as the "financial modernization act of 1999"

the gramm - leach bliley act.

under the standardized ISO businessowners form, how much is paid for pollution clean - up & removal in case of a covered loss?

$10,000.

what is the limit of insurance that applies to property in transit in the BOP? (business owner policy)

$10,000.

an insured may purchase optional limits of liability for uninsured motorist coverage in the amounts of ___

$100,000 | $300,000 | $50,000

how many days from the completion of the west virginia prelicensing course do you have to take and pass the state licensing exam?

120 days.

under the west virginia automobile insurance plan, an insured may be eligible for coverage under a standard or preferred policy, if during the next ___ there are no traffic violations or accidents and continuous insurance coverage has been maintained.

3 years.

if a insured's company is damaged by fire because of an adjoining property, and is also covered under a business insurance company, then the insurance will cover the loss of earnings for a maximum of ___

4 weeks.

which best defines a hazard?

a condition that increases the chance of a loss.

which of the following injuries is covered under the medical payments section of an insured's commercial general liability policy?

a customer is injured while visiting the insured's showroom.

what would be considered a vacant on an unendorsed commercial property policy?

a lease building in which less than 31% of the building is occupied.

which policy is intended to broaden the coverage?

umbrella liability.

an insurer must provide ___ days notice of its intention not to renew an automobile policy.

45 days.

a domestic user will be examined by the commissioner at least once every ___

5 years.

in 2015, west virginia passed a new modified comparative fault standard which can bar a plaintiff in a lawsuit from recovery, if he or she is found to be more than ___ at fault in the bodily injury or property damage.

50%.

under the west virginia workers compensation code, the total and irrevocable loss of hearing in both ears in considered ___

55% disability.

a fire in an insured's restaurant burns the kitchen walls and causes smoke damage to the entire interior. water used to extinguish the fire causes extensive damage to floors and furnishings. the water damage is BEST described as ___

a direct loss.

a warranty in insurance is best described as ___

a guarantee that the statements made by the applicant are completely true & untrue statements can void the coverage.

which of the following would be included under the definition of a personal injury?

a tenant evicted by his|her landlord sues the landlord for invasion of privacy and wrongful eviction.

under the 1943 new york standard fire policy, what would cause the insurer to suspend coverage?

an increase in hazard.

one of the insured trucks in involved in an accident & the goods is damaged. which coverage would respond to cover this loss?

an inland marine motor truck cargo policy.

which term under the CGL policy includes continuous or repeated exposure to conditions that may result in bodily injury or damage, neither expectedly inteded by the insured?

an occurrence.

an alien insurer is one that is found under the laws of ___

any country other than the united states.

what best describes "covered property" under the equipment breakdown coverage form?

any property that the insured owns or is in the insureds care.

sally's home is covered under an HO-3 policy. coverage F will pay medical expenses for ___

anyone who is invited onto sally's property & is injured while there.

each of the following is a comprehensive loss under the physical damage coverage of a commercial auto policy, except: 1. damage to a covered auto caused by hail during a thunderstorm. 2. damage caused when the auto overturned on a sharp curve. 3. damage to the auto caused by flood waters. 4. damage caused when vandals spray - painted graffiti on the auto.

damage caused when the auto overturned on a sharp curve. (this would be considered a collision claim)

what is NOT considered to be an unfair claims settlement practice?

denying a claim that is not covered by the policy.

a company has been hired to determine the extent of pollution damage and recommend methods of its removal. however, it fails to identify some of the pollutants. what coverage might this company need to cover their liability exposures?

environmental errors and omissions coverage.

(true | false) equipment breakdown protection coverage would cover hail damage to industrial air conditioning units on the roof of an insured business.

false.

the mobile home coverage endorsement can be added to a homeowners policy to include the perils of transformation. which is not one of those perils covered during the course of transportation? 1. upset. 2. standing or sinking. 3. collision. 4. flood.

flood.

an insurance company headquartered in ohio, conducting business with west virginia is know as ___

foreign insurer.

unfair claim practice:

improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim.

under the personal auto policy, the "supplementary payments" coverage is ___

in addition to the limit of liability.

exclusive agency system:

insurance company contracts with agencies.

direct writer system:

insurance company's agents are actually employees.

a companies promise "to pay for damage caused by or resulting from any covered loss" would be found in what section of a commercial property policy?

insuring agreement.

what best describes a representation in an insurance application?

it is a statement made by the insurer that certain conditions exist at the time of application.

jack rents a home to tanya & maintains a DP3 policy on the dwelling. tanya accidentally leaves the oven on all day while she is out, her lasagna catches fire, burning jacks house to the ground, along with all the contents located inside. which would be covered under the coverage C of jacks DP3 policy?

jacks appliances.

all of the following are excluded under the earthquake endorsement to a homeowners policy, except: 1. flood & tidal wave. 2. land shock waves. 3. waves & tsunami. 4. the cost of filling land.

land shock waves.

a partner in a firm authorized to have custody of the insured property outside the premises would be called a ___

messenger.

an insurance company owned by its policyholder is known as ___

mutual insurance company.

what is the time limit for a payment on an agreed settlement claim in west virginia?

no later than 15 working days of the agreement amount.

basic cause of loss form:

only covers specific named perils [named peril form]

what statement correctly applies to a named peril policy?

only the perils listed by name will be covered.

what is a mutual company?

owned by the policyholders.

what is a stock company?

owned by the stockholders.

what is found in section I of the homeowner form?

personal property coverage.

an actual lawful, and substantial economic interest in the safety or preservation of property from loss, destruction, or pecuniary damage or impairment is known as the ___

principal of insurable interest.

the primary purpose of west virginia automobile insurance plan is to ___

provide auto liability insurance for individuals unable to obtain it in the normal marketplaces.

special cause of loss form:

provides coverage for all risks of loss [open peril form "all risk"]

agent wilson strikes a deal with his client: if the client agree to purchase homeowners insurance from agent wilson, wilson will waive the clients first premium payment. wilson is guilty of ___

rebating.

insurance usually provided by the government because it's not readily available from private insurers?

residual market insurance.

the uncertainty of future outcome.

risk.

a forcible removal or property from a messenger through the threat of violence is called ___

robbery.

a prospective insured wishes to protect her firm against crime concerning the messenger going from the firm to the bank. this situation would be considered ___

robbery.

under a CGL policy, personal & advertising injury liability coverage does not apply to damages resulting from ___

slanderous statements made by an advertising firm.

after paying a claim, an insurance company may have the right to pursue legal action against the negligent party. this right is called ___

subrogation.

what does the vacancy clause state?

that when the policy is issued to the owner or general lessee building, such building is vacant unless at least 31% of its total square footage is in use.

"sinkhole collapse" is a peril under which of the following ISO commercial property cause of loss forms?

the basic, broad, & special forms.

federal law that requires insurers to give customers written privacy notices is:

the gramm-leach-bliley act.

for coverage to apply under a workers compensation policy, the injury must be compensable, which means ___

the illness or injury must have been the result of an accident arising out of & in the course of the workers employment.

a policyholder would expect to find what information in the agreement section of the auto policy?

the insurance company's promise to pay on behalf.

the insured is covered under a BOP special form. thieves break into the insureds warehouse and steal building materials. the insurer will ___

the insurer will pay the entire claim, subject to policy limits, less any deductible.

what is generally not considered to be a legal defense against claims of negligence?

the loss to the plaintiff was caused intentionally by the defendant.

direct response system:

there are no argents.

which of the following is NOT extended under the section II - liability of the business owners policy?

valet services bodily injury.

the ___ states that insurers issuing fire insurance policies on real property in west virginia are liable for the limit of insurance on the property in case of total loss by fire or as otherwise stated in the policy.

valued policy law.